Goldman Sachs issued a bearish report on China banks earlier this month. The reaction was swift – not in a good way. China bank stocks have plunged since the report was released. Here’s ICBC, trading very close to it’s 2022 lows. At this price, it pays a 9.1% dividend yield, and a 65% discount to book (if book value even means anything for a China bank). You know the saying to be greedy when others are fearful? And also another saying not to catch a falling knife – because markets are generally right? So what do we have here – are the markets right on China banks, or are they horribly wrong? Are China banks at a 9% dividend a good buy? Goldman Sach’s report on the China Banks Let’s start with the report from Goldman Sachs that triggered this latest sell-off. Titled “Testing the ‘Impossible Trinity’”, it is a 3 part series on the China banks issued on 4 July 2023....